Allowable Expenses

DanceT

Hi, I am a PAYE worker who is setting up a dance class. As far as I know the way I handle it is I can do a self assessment online of how much I estimate I will earn for the year as extra income, tax on the extra income will come out of my pay cheque and then at the end of the Tax Year - October - I fill in a form with my actual earnings.

What I would like to know really is what Expenses can be deducted from my extra income before I estimate earnings for Revenue. I will be paying insurance, an organizational fee, Garda Clearance and Rent on a dance hall and I presume all these can be deducted. Can I claim back petrol and/or Travel and Sub? Is there anything else that would be deductible?

Thanks in advance, any help appreciated.

gerrybbadd

DanceT wrote: »

Hi, I am a PAYE worker who is setting up a dance class. As far as I know the way I handle it is I can do a self assessment online of how much I estimate I will earn for the year as extra income, tax on the extra income will come out of my pay cheque and then at the end of the Tax Year - October - I fill in a form with my actual earnings.

What I would like to know really is what Expenses can be deducted from my extra income before I estimate earnings for Revenue. I will be paying insurance, an organizational fee, Garda Clearance and Rent on a dance hall and I presume all these can be deducted. Can I claim back petrol and/or Travel and Sub? Is there anything else that would be deductible?

Thanks in advance, any help appreciated.

Any expense that you incur, that is directly related to the trade, and is incurred necessarily and exclusively, to enable you to perform that trade, can be used as a deduction.

The organisational fee - do you need to pay this to be able to teach? If not, you may find its not deductible.

Do you have far to travel in the car for lessons?

Rent, you need to pay this, so you can use this as a deduction.

So, think of all the steps involved, from advertising, to materials you may have had to buy etc, in setting up, and then operating the business. Those expenses, that you absolutely needed to spend to be able to run the business, those are the ones that are deductible.

rahmalec

gerrybbadd wrote: »

Any expense that you incur, that is directly related to the trade, and is incurred necessarily and exclusively, to enable you to perform that trade, can be used as a deduction.

The organisational fee - do you need to pay this to be able to teach? If not, you may find its not deductible.

Do you have far to travel in the car for lessons?

Rent, you need to pay this, so you can use this as a deduction.

So, think of all the steps involved, from advertising, to materials you may have had to buy etc, in setting up, and then operating the business. Those expenses, that you absolutely needed to spend to be able to run the business, those are the ones that are deductible.

Is that really true?

Employees can claim for expenses wholly, exclusively and necessarily incurred
http://www.revenue.ie/en/business/paye/guide/employers-guide-paye-expenses.html

For self-employed it's wholly and exclusively. Doesn't say necessarily:
http://www.revenue.ie/en/business/running/allowable-expenses.html

gerrybbadd

rahmalec wrote: »

Is that really true?

Employees can claim for expenses wholly, exclusively and necessarily incurred
http://www.revenue.ie/en/business/paye/guide/employers-guide-paye-expenses.html

For self-employed it's wholly and exclusively. Doesn't say necessarily:
http://www.revenue.ie/en/business/running/allowable-expenses.html

Ah, that's it.

Was getting the terminology mixed up/

DanceT

Me again, sorry

My dancing fees, insurance and Garda Clearance are a must, can't teach without them.
I can claim some of my phone as its both used for personal reasons and for the class.
Rent needs to be paid obviously so that can be claimed.
I haven't done any advertising yet so I can include that when the time comes.
I will probably have to buy portable flooring etc. to use in the halls so this can be claimed.

Stationery, folders etc? presume anything that's used for th class can be claimed.

I've been told by different people that I can claim back my petrol or I can claim Travel & Sub, can I choose myself which to claim back or can I do both? Claiming T&S would mean not having any receipts to hold onto I suppose which would make it easier than having to remember to hold onto petrol receipts.

MackMack

DanceT wrote: »

I've been told by different people that I can claim back my petrol or I can claim Travel & Sub, can I choose myself which to claim back or can I do both? Claiming T&S would mean not having any receipts to hold onto I suppose which would make it easier than having to remember to hold onto petrol receipts.

If the classes are being held in the same place for every class then that will be considered your place of work and travel expenses / subsistance can't be claimed.
If you have multiple places you do the classes then the travel between these places can be claimed but travel to the first from home, and from the last to home can't be claimed.

The big thing for claiming expenses/subsistance is what Revenue decide is your normal place of work. You can only claim for travel to a place outside of your normal place of work.